India is pushing for significant concessions in its free trade talks with the European Union, signaling growing resistance to the EU’s efforts to impose uniform standards on global partners. In an exclusive interview with The Capitals, India’s External Affairs Minister S. Jaishankar criticized the EU’s Carbon Border Adjustment Mechanism (CBAM), describing the policy as burdensome and emblematic of the bloc’s struggle to maintain its influence.
“The notion that one region should set standards for everyone else is something we fundamentally oppose,” Jaishankar said, underscoring India’s broader pushback against the EU’s ambitious Green Deal regulations.
Jaishankar’s visit to Brussels comes amid renewed momentum in EU-India trade negotiations, which had stalled for nearly a decade. The Indian government is leveraging geopolitical shifts and its vast pool of skilled labor to position itself as a vital economic partner for the EU—one more reliable than China.
“We are eager to deepen our relationship with the EU, and I am optimistic the feeling is mutual,” Jaishankar told The Capitals and Euractiv’s Editor-in-Chief Matthew Karnitschnig on Monday. The minister is scheduled to meet European Commission President Ursula von der Leyen and Estonian Prime Minister Kaja Kallas today.
Translated for You: #EU shall move on #CBAM and rules of origin.
Important deal#India #EU #FTA https://t.co/XzjDryxwmn— Andrea Čepová (@AndreaCepova) June 10, 2025
Trade Talks Regain Steam Amid Geopolitical Shifts
The stalled trade negotiations, dormant between 2013 and 2022, are now progressing against a backdrop of shifting alliances. India is wary of the growing strategic ties between Russia and China, while the EU grapples with steep tariffs imposed by its largest trading partner, the United States.
This environment has allowed India to negotiate from a position of strength. Jaishankar has reiterated India’s firm stance on maintaining high agricultural tariffs, while seeking major carve-outs from the EU’s regulatory demands in the forthcoming trade agreement—a deal von der Leyen has described as one of the largest of its kind.
“Europe is becoming far more pragmatic in its approach,” Jaishankar said.
Climate Policy Disputes Loom Large
A critical sticking point remains the EU’s Carbon Border Adjustment Mechanism, a climate policy designed to tax imports based on their carbon footprint, with the dual goals of leveling the playing field for European companies and encouraging greener production worldwide.
“We have serious reservations about CBAM and have been very transparent about them,” Jaishankar explained, indicating that negotiations will need to carefully balance climate ambitions with trade fairness.
Despite these challenges, the two sides have reportedly agreed on 10 of the 20 chapters under negotiation, with hopes to finalize the deal by year-end. “There is a new flexibility in the EU’s stance. Europe is not fixed in its demands,” the minister noted when asked about the consistency of the Commission’s approach.
India warms to ‘more realistic’ EU https://t.co/8QuS0mNd1u pic.twitter.com/tGbDZAxsZz
— Euractiv (@Euractiv) June 10, 2025
India’s Strategic Offer
India’s pitch to the EU hinges on its vast, youthful workforce and growing expertise in technology and healthcare sectors. The country aims to secure greater access for skilled professionals to European labor markets, addressing challenges posed by an aging and slower-growing European population.
Without directly naming China, Jaishankar suggested that European companies are eager to partner with countries they can trust to safeguard intellectual property and data privacy—areas where India seeks to distinguish itself.
A Multipolar World and Strategic Autonomy
Jaishankar framed the emerging global order as “multipolar,” with competing centers of power replacing the old dominance of a few superpowers. He welcomed Europe’s recent embrace of concepts like “strategic autonomy,” noting that such ideas have long been central to India’s foreign policy.
“Today, I hear these words in Europe—words that have been part of our lexicon for decades,” he said.
Parallel Talks with the U.S.
Amid concerns over escalating U.S. tariffs, India is also engaged in parallel trade negotiations with Washington. When asked about his level of trust in former President Donald Trump, Jaishankar responded pragmatically: “I take the world as I get it.”